HYBE, Home of BTS, Raided in Insider Trading Investigation

HYBE, the agency behind BTS and other major K-pop acts, has been raided by prosecutors as part of an insider trading investigation.

According to The Korea Times, the Seoul Southern District Prosecutors’ Office recently searched the company’s headquarters in central Seoul over allegations of an executive using insider information to gain profits of $176,500 (240 million won).

This executive is being investigated after he allegedly purchased shares of fellow K-pop agency YG Entertainment’s subsidiary YG Plus after learning of HYBE’s investment plans in the company.

In January 2021, HYBE and its technology subsidiary, Weverse Company, acquired 17.89% of YG Plus in a merchandising and distribution deal.

Separately, Bang Si-hyuk, the founder and chairman of HYBE, is under investigation over allegedly defrauding investors ahead of the company’s initial public offering in 2020 and pocketing $289 million (400 billion won).

In addition to BTS, HYBE is home to TXT, Seventeen, LE SSERAFIM, and other K-pop stars.